UPDATE 2.39PM: A man and a woman have been taken into custody in Woodville after a man was shot in the arm hours earlier in the nearby township of Dannevirke.

Police were called to a property in Hunter Street in Dannevirke just before 11am on Friday and discovered the victim.

A white station wagon was seen leaving after the shooting.

Later in the day police said the man and woman were taken into custody at a Woodville property as part of the investigation into the shooting.

Police aren't commenting on the relationship between the victim and the alleged offenders, or what may have led to the shooting.

The victim, who has a moderate injury to his arm, and was taken to Palmerston North Hospital by St John ambulance.

Hunter Street resident Chris Bone lives around six houses away from where the shooting occurred.

He said he had not heard any shots, but had seen around four police cars racing down the street.

A police spokeswoman said police were called to the Richardson St property about midday, and neighbouring streets had been cordoned off.

A Caltex Woodville staff member said Police had cordoned off Ferguson and Richardson Sts, located several blocks behind the service station.

"[AOS] are there and there's lots of police everywhere," she said. "People have been told to stay inside."